Antony Waste believes that the extension will allow current volatility to subside and allow all categories of investors to participate in the Issue.
Antony Waste Handling Cell on March 6 extended its initial public offer subscription deadline by five working days to March 16. The company said weak market conditions amid the Yes Bank crisis had hit investment sentiment and led to poor subscription numbers for its offer until March 6, the scheduled last day of the three-day issue.
The Rs 203-crore public issue was subscribed 49.55 percent on the third day of bidding, the exchanges data showed.
Weak subscription numbers had left the company with limited options. It could opt to either lower its price band, extend the closing date or withdraw the issue.
The issue price band has also been revised to Rs 294-300 from Rs 295-300 per share earlier.
"Markets have been witnessing significant volatility since the filing of our RHP. Additionally, the preventive moratorium imposed on Yes Bank on March 5 has adversely impacted investor sentiment, with the markets falling and significant erosion in the liquidity position across the system and network impacts. We believe that the exceptional volatility seen in markets on March 6 has impacted investment decisions for investors across categories and in light of the same, we have decided to extend the bidding period," company reasoned.
Antony Waste believes that the extension will allow current volatility to subside and allow all categories of investors to participate in the issue.
As of March 6, the reserved portion of qualified institutional buyers was subscribed 88.86 percent, while that of non-institutional investors 25.38 percent and retail 38.16 percent.
The Rs 10,340-crore public issue of SBI Cards and Payment Services was also impacted by the current market conditions with the IPO subscribed only 26.54 times, much lower than analysts expectations considering company's strong financials, elite position in the credit card industry, support from parent State Bank of India, among other things.
In fact, SBI Card grey market premium also reduced to around Rs 100-125 per share against more than Rs 350-380 per share before the issue opened for subscription.The BSE Sensex has lost around 9 percent and investors' wealth eroded by more than Rs 14 lakh crore since February 19 this year, due to global growth concerns amid the fast-spreading novel coronavirus.
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